Representation of DP9 Limited [2020] JRC 047 (12 March 2020)

Representation of DP9 Limited [2020] JRC 047 (12 March 2020)

The court held that it has the power under Article 5(2) of the Bankruptcy (Désastre) (Jersey) Law 1990 to require a creditor to provide an indemnity to the Viscount in advance of costs being incurred, and that an unlimited indemnity was not appropriate in this case. The applicant was ordered to provide £10,000 to...

Source-derived case information.

Citation
[2020] JRC 047
Parties
Applicant: DP9 Limited; Respondent: SPARC Group Limited
Jurisdiction
Jersey
Judgment Date
12 March 2020
Procedural Posture
Insolvency Application (désastre) / Judgment on Application to Place Company En Désastre and Determination of Indemnity
Outcome
Application granted; SPARC Group Limited placed en désastre subject to indemnity conditions.
Legal Topics
Declaration En Désastre, Creditor Indemnity, Court Powers Under Article 5(2), Security for Costs, Discrimination Under ECHR
Insolvency Bankruptcy Company Law Declaration En Désastre Creditor Indemnity Court Powers Under Article 5(2) Security for Costs Discrimination Under ECHR

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Parties

DP9 Limited

Applicant

SPARC Group Limited

Respondent

Procedural Posture

Insolvency Application (désastre) / Judgment on Application to Place Company En Désastre and Determination of Indemnity

Legal Issues

  1. 1 Whether the court should declare SPARC Group Limited en désastre on the application of DP9 Limited
  2. 2 Whether and to what extent the applicant creditor should indemnify the Viscount for costs under Article 5(2) of the Bankruptcy (Désastre) (Jersey) Law 1990

Ratio Decidendi

The court held that it has the power under Article 5(2) of the Bankruptcy (Désastre) (Jersey) Law 1990 to require a creditor to provide an indemnity to the Viscount in advance of costs being incurred, and that an unlimited indemnity was not appropriate in this case. The applicant was ordered to provide £10,000 to the Viscount within 28 days, with a further £5,000 if required, and further costs only with the applicant's agreement.

Court Disposition

Application granted; SPARC Group Limited placed en désastre subject to indemnity conditions.

Orders

  • Applicant to provide £10,000 to the Viscount within 28 days to fund external costs.
  • Applicant to provide a further £5,000 if required by the Viscount.